Yesterday, the Bank of England intimated there could be a faster pace of interest rate hikes if the UK manages a smooth exit from the European Union. Although the Bank held rates constant at 0.75% this month, its latest estimates hint that rates could accelerate to 1.5% over the next three years.

In response, the GBP/USD took a dramatic bullish turn. On the 2-hour chart, the cable violated the double top resistance level of $1.2915 to enter a new bullish range. The pair is likely to face a strong resistance near $1.3035 which is extending by an intraday high of November 1. The bullish breakout can extend bullish rally until $1.3065 today.

GBP/USD – Technical Levels

Support Resistance
1.2878 1.3075
1.276 1.3154
1.2562 1.3351
Key Trading Level: 1.2957

GBP/USD – Market Sentiment

Weekly – Stong Buy
Daily – Strong Buy
Hourly – Buy

GBP/USD – Trade Plan

Today, the idea is to stay bullish above $1.2950 to target $1.3025 and $1.3050.

Good luck!